Recently, the President enacted the Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance 2021. Through this ordinance, Appellate authorities under nine laws have been replaced with High Courts. The Ordinance has additionally amended the Finance Act 2017 with new provisions regarding the composition of search selection committees, as well as rules on qualifications of members, terms and conditions of their service, which relate to 19 tribunals including Customs, Excise, and Service Tax Appellate Tribunal.
Details of Search-cum-selection Committees
The Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance 2021 states that the Chairperson and Members of the Tribunals will be appointed by the central government on the recommendation of a Search-cum-Selection Committee. This committee will include the Chief Justice of India or a Supreme Court Judge nominated by him as the Chairperson (with casting vote), Secretaries nominated by the central government and either the sitting or outgoing Chairperson or a retired Supreme Court Judge or a retired Chief Justice of a High Court. Additionally, the Secretary of the Ministry under which the Tribunal is constituted will also be a member, albeit without voting rights.
Term of Office for Tribunal Members
The term of office for the Chairperson of the Tribunals will be of four years or until they reach the age of seventy years, whichever comes first. Similarly, other members of the Tribunals will serve for a term of four years or until they attain the age of sixty-seven years, again opting for whichever event occurs earlier.
The Nine Laws: Replacement of Appellate Authorities/Tribunals
The laws affected by the Tribunal Reforms (Rationalisation and Conditions of Service) Ordinance 2021 include The Cinematograph Act, 1952, The Trade Marks Act, 1999, The Copyright Act, 1957, The Customs Act, 1962, The Patents Act, 1970, The Airports Authority of India Act, 1994, The Control of National Highways (Land and Traffic) Act, 2002, and The Geographical Indications of Goods (Registration and Protection) Act, 1999.
Reasons behind Replacing Tribunals
The quality of adjudication often falls short of expectations, and there have been significant delays because the government has struggled to find competent persons willing to accept positions on these tribunals. As a result, litigation has become more expensive. Additionally, there have been numerous litigations since 1985 by advocate bar associations against the tribunals over serious concerns of their independence from the executive.
Concerns Related to Tribunal Replacements
The increased caseload for high courts due to replacing the tribunals is drawing concern.
The History and Role of Tribunals
A tribunal is a quasi-judicial institution that was established to resolve administrative or tax-related disputes and other issues. This term was derived from ‘Tribunes’, meaning ‘Magistrates of the Classical Roman Republic’. The introduction of tribunals wasn’t original to the constitution but was included under the 42nd Amendment Act 1976. This amendment added Part XIV-A to the Constitution, which deals with ‘Tribunals’ and includes Article 323A and 323B, which respectively deal with Administrative Tribunals and tribunals for other subjects.